Are you prepared for the five stages of economic collapse?

(NaturalNews) There's no shortage of experts and observers warning of an impending economic collapse – and for good reason.

The United States – along with the rest of the world – is mired in deep and nearly insurmountable debt. The economy is not truly recovering, despite what we are being told. Bankers are playing high stakes casino games in the form of derivatives, and the whole house of cards threatens to collapse at any moment.

A recent article written by David Meyer, and posted on All Self Sustained, lists the five stages of economic collapse, according to Meyer's vision of the process:

"While it can be accelerated by certain events like war, a natural disaster, pandemic, terrorist attack, or even an impending asteroid impact, history has shown that economic collapse will essentially happen in this five stage process. To survive the collapse, it is important to read and interpret the signs and understand what assets are important to the current situation so you can be prepared for the worst thereby allowing you to survive intact and with as little damage as possible."

Stage One: The seeds are sown

In Meyer's opinion, the first stage of an economic collapse occurs when a healthy and thriving society allows idealistic-sounding, but inherently dangerous and subversive trends to develop:

"Redistribution of Wealth Policies are implemented and quietly woven into the fabric of society. Unchecked and under the guise of fairness and equality, these policies slowly decrease productivity and increase dependency on government entitlement and welfare programs."

It could be argued that in America, this stage already occurred some years ago.

Stage Two: A downward spiral

Once the entitlement spirit and the nanny state mentality emerge, unemployment rises along with government spending. Dependence on the state increases and productivity goes down. Gold and precious metals rise in value. This is the point where citizens should seriously consider obtaining property in a secluded place, far from urban centers, in case a need to bug out should arise.

Stage Three: The real collapse begins

Based on Meyer's criteria, it would seem that America is now transitioning from its current Stage Two status into Stage Three, when things begin to seriously deteriorate.

During Stage Three, unemployment surpasses 25 percent, and cities begin to resemble those found in the Third World. Homelessness increases, while banks and businesses go under. Civil unrest and riots begin occurring as government resources and services become scarce and unreliable. The government begins disarming citizens. Life becomes dangerous and violent in the cities.

Stage Four: All bets are off

Once the third stage has occurred, and society as we know it has fundamentally broken down, Stage Four ushers in a chaotic period when power is up for grabs. It's difficult to predict exactly what will happen during this stage – especially if the power grid fails – but it's full economic collapse at this point. Basic commodities will likely be heavily rationed – if available at all – and violent gangs or other factions may seize control of what's left. This is the time to head for the hills in an attempt to survive independently – but of course, that can only happen if you've begun preparing for it in advance.

Stage Five: Martial law

In Meyer's grim prediction, Stage Five brings martial law and conflict between citizens and government forces. The government outlaws hoarding and people begin to starve. At this point, democracy is destroyed and a totalitarian system is established. Those who saw it coming may be able to survive in tightly-knit, independent communities that can feed and protect themselves, but the rest of the populace may be doomed or turned into virtual slaves.

If we turn things around now, we still have a good chance to salvage our democratic way of life – a birthright which has already been dangerously compromised. If we wait much longer to address the problems, we face the risk of losing everything.